Wed 10 Sep 2008
Trading Mantra
Posted by ray under Psychology
Your Daily Trading Mantra
Cross ref:
September 10, 2008 – 10:36 pm Once more unto the breach - our mentor is winging his way somewhere again…
Since the September seminar is coming up this weekend at SMU, I shall touch on some of the essential habits of success which students would do well to condition themselves to behave with discipline over and over again as in repeating a mantra.
Your Daily Mantra:
1. The market pays you to be disciplined.
The constant truth is discipline equals increased profits. Without discipline, you will put less money in your pocket.
2. Be disciplined 100 per cent of the time.
If you trade with discipline nine out of ten trades, you cannot claim to be 100 per cent disciplined. This 10 per cent undisciplined trade will really hurt your overall performance. So discipline must be practised on every trade.
3. Love to lose money.
Traders ask: What do you mean, love to lose money?
What the rule means is that you are going to lose throughout your trading sessions. So, get out of your bad trade as soon as you realise you have made a wrong choice. This will save you a lot of trading capital and make you a better trader.
4. If your trade is not going anywhere in a given timeframe, it is time to exit.
This rule relates to the theory of capital flow. When there is price stagnation which happens often throughout a trading session, the market is telling us that they are happy with the prevailing bid and offer. You do not want to be in the market then and best to exit. It is a waste of time, capital and emotional energy. The market will heat up again and then you can re-enter the market with a new trade.
5. Never take a big loss, only a big loss can hurt you.
Never put yourself in a position of losing more money than you can afford. You are not a ‘loser’ unless you do not get out of the losing trade once you know the trade is no longer good.
Big losses wipe out too many small winners you have worked hard for. It is also psychologically devastating when you lose big as it may take a long time to build up your confidence again. Then you are a loser.
There are more disciplinary rules as you go on your trading journey but if you can just keep the foregoing five, you will survive.
ANA aka IDKIT
Ag Moderator
September 11th, 2008 at 9:01 am
From Dr Brett at Traderfeed:
http://traderfeed.blogspot.com/2008/09/midweek-thoughts-and-site-seeing.html
IDkit aka Ana has left a new comment on the post “Midweek Thoughts and Site Seeing”:
Brett
Before I proceed, a minute of silence for 9/11 victims and families.
Your on going development of two discretionary trading systems is unique. Hope you will build in a safeguard for a Black Swan event like 9/11.
Thank you for mentioning my post on trading mantras.
BTW 9/12 is auspicious for me!
By idkit on Sep 11, 2008 | Edit
September 11th, 2008 at 9:10 am
MEMO from JimK
CME Group Commemorates September 11, 2001, with Moments of Silence
Tuesday September 9, 4:12 pm ET
WHAT: On September 11, 2008, CME Group will be remembering the victims
of the terrorist attacks of September 11, 2001. CME Group will
observe one moment of silence on its trading floors in Chicago and
four moments of silence on its trading floors in New York
corresponding to the times the planes hit each tower and the times
each tower collapsed. In addition, electronic trading on CME
Globex® will observe a voluntary moment of silence for CME and
CBOT products, as well as four voluntary moments of silence for
NYMEX and COMEX products corresponding to the times the planes hit
each tower the times each tower collapsed. Each moment of silence
will last for one minute.
WHEN: Thursday, September 11, 2008
CME Group - CME/CBOT (trading floors and electronic trading)
7:18 a.m. CT/8:18 a.m. ET
CME Group - NYMEX/COMEX (trading floors and electronic trading)
7:46 a.m. CT/8:46 a.m. ET
8:03 a.m. CT/9:03 a.m. ET
8:59 a.m. CT/9:59 a.m. ET
Best regards,
Jim Kaminecki, Daniels Trading
ANA aka IDKIT
Ag Moderator
September 12th, 2008 at 12:28 am
hi ray and ana! 2 quotes i like:
Four elements all great traders possess: Trade with an edge, Manage risk, Be consistent, Keep it simple
~ Way of the Turtle, by Curtis Faith
There are probably hundreds of thousands of trading systems that work. But most people when given such a system will not follow it. Why not? Because the system does not fit them. One of the secrets of successful trading is finding a system that fits you.
~Trade your way to Financial Freedom, by Van Tharp